The Cameron Highlands is named after William Cameron, a surveyor working for the British colonial administration who explored the region in the mid-1880s. In 1931 a township site was selected for Tanah Rata, with designated areas for public buildings, residential use, the armed forces, and recreation. Planning for the town was based in part on the garden city movement, whose supporters included Charles Compton Reade, the first town planner of the Federated Malay States. Economically, the town depends on income from agriculture and from tourism, both of which are expanding and creating environmental problems.

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